UPDATE: Santa Clara Supervisors Nix Concert Hall Plan

SAN JOSE (CelebrityAccess MediaWire) — Santa Clara County Supervisors scrapped plans to build a 7,000-seat concert hall at the county fairgrounds, citing too many risks associated with the House of Blues-operated $96-million venue.

The county had approved the development two years ago, but was halted by a lawsuit from the city of San Jose challenging the project. The city later settled the suit, agreeing to pay the county $22.5 million for lost time, but the plans had already been mangled too much to save.

Restarting the project now included a public contribution of $15 million, which was too much for many to bear.

“There hasn’t been justification for $15 million of public funds,” supervisor Jim Beall told the Silicon Valley Business Journal.

The supervisors rejected a last-minute offer from AEG Live, who said it would pay the $15 million up-front costs.

Representatives from House of Blues told the paper they regretted that the project won’t be built.

“It’s an unfortunate decision,” John Van Zeebroeck, SVP of Design and Construction, said after the meeting.

He said the company remains interested in the South Bay area, and after taking time to regroup, will consider other possible deals. –by CelebrityAccess Staff Writers

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